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Portugal

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Tax authorities

Directorate General for Taxation
Rui da Prata 10-20
1149-027 Lisbon
Tel: +351 21 881 26 00
Email: dgci@dgci.min-financas.pt
Website: www.dgci.min-financas.pt

Tax rates at a glance

(As of January 1 2011) 

Corporate income tax rate 25%
Capital gains tax rate 25%
Branch tax rate 25%
 
Withholding tax
Dividends 21.5%
Interest 21.5%
Royalties from patents and licences (non-residents/residents) 
15%/16.5%
Branch remittance tax Nil
 
Net operating losses (years)
Carryback Not allowed
Carryforward 4 years
  • The standard corporate income tax (CIT) rate is 25%. A 12.5% rate applies on the first €12,500 ($18,000) of taxable profits. A municipal surcharge of up to 1.5% is levied on the taxable profit of the company depending on the municipality. A state surtax of 2.5% is also levied on taxable profits of more than €2 million. Lower corporate income tax rates are available under certain tax incentives. It is expected that the reduced CIT rates will be eliminated from January 1 2012 (measure already proposed).
  • Capital gains derived by companies are included in the taxable profit and are subject to CIT in general terms. A rollover relief mechanism allows resident entities to exempt 50% of the capital gain.
  • Portugal does not tax the remittance of profits by a branch to its non-resident head office.
  • From January 1 2011 a 30% withholding tax applies on investment income (for example, dividends and interest) paid via bank accounts to undisclosed individuals/entities (except when the beneficial owner is identified).
  • Portuguese tax authorities have already clarified that the reduction of the loss carryforward period from six years to four years (amended by the 2010 Budget Law) is only applicable to tax losses arising from fiscal year 2010 onwards. It is expected that the carryforward period will be further reduced to three years as from 1 January 2012 (measure already proposed).

Source: Taxand advisers from Garrigues – Taxand

Portugal

Jaime Carvalho Esteves and Catarina Gonçalves
PwC
Portugal

Jaime Carvalho Esteves and Catarina Gonçalves of PwC discuss Portugal's growing network of tax treaties as the country seeks to become a hub for investment in emerging economies.

[Show full article]

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PwC

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See also

Portugal
Western Europe

Firm contact details